Six years ago, Nationwide (an insurance and financial services company with US$26 billion in annual revenues) embarked on building industry leading software engineering capabilities. Their lean journey has enabled and engaged their 9,000+ person IT organization to deliver great solutions to customers and partners with ever-increasing levels of quality. In this session, Mike explores the lean system that guides all aspects of software engineering, service management, and infrastructure including a lean management system from the frontline to the C-suite, a focus on problem solving, visual management, accountability, and what is possible when technology and lean come together. Discover more Lean IT case studies on www-lean-it-summit.com

1. 1
Lean IT Summit 14 & 15 March 2017
Copyright © Institut Lean France 2017
Lean IT, DevOps & Agile
Learnings from Nationwide
Mike Orzen CMA, CFPIM, PMP, LITP
Mike Orzen CFPIM, PMP, LITP
• Accounting/IT/Manufacturing/Service
• 20+ years of Lean Process Improvement
• Lean Coach, Consultant, Adjunct Professor
§ Lean Enterprise Institute, The Shingo Institute,
The Ohio State University
Shingo Prize 2011
©
2017
Mike Orzen
&
Associates,
Inc. mikeorzen.com
INFORMATION TECHNOLOGY AT NATIONWIDE
35,000+
PERSONAL
COMPUTERS
10,000+
PHYSICAL & VIRTUAL
SERVERS
9,000+
IT WORKFORCE
PREDOMINANTLY
IN-­HOUSE
$1+
BILLION
ANNUAL IT
SPEND
~8 PB
IN STORAGE
©
2017
Mike Orzen
&
Associates,
Inc. mikeorzen.com
LEAN IT BENEFITS & VALUES
APPLICATION
MAINTENANCE
SOFTWARE
ENGINEERING
HELP DESK
1500+ 190+
83%
with zero
defects
57%
With top
quartile
productivity
95.1%
Service
Quality Score
95.9
User
Satisfaction
Rate
720+
Increasing
employee
engagement
scores200
Releases
©
2017
Mike Orzen
&
Associates,
Inc. mikeorzen.com

2. 2
Lean
IT is
a
new
way
of
leveraging
technology
to
engage
people,
improve
process,
and
solve
problems.
WHAT IS LEAN IT?
NEW
WAY
OLD
WAY
Source:
Lean
IT,
Bell
and
Orzen
©
2017
Mike Orzen
&
Associates,
Inc. mikeorzen.com
67
2011
2016
DEFINING LEAN
1) Creating and Managing Flow
2) Eliminating Waste, Variation & Overburden
3) Applying Methodical Problem Solving
©
2017
Mike Orzen
&
Associates,
Inc. mikeorzen.com
TRADITIONAL SYSTEMS LEAN SYSTEMS
Authority Responsibility
Results focused Process focused
Expert “staff” functions Expert teams
Jump to solutions Root cause problem solving
Corner office management Go & see management
Report analysis
(delayed)
Visual management
(real-­time)
WHAT LEAN IT LOOKS LIKE
©
2017
Mike Orzen
&
Associates,
Inc. mikeorzen.com

3. 3
SYSTEMS THINKING
The key to the Toyota Way…is not any of the individual
elements – but what is important is having all the
elements together as a system. It must be practiced
everyday in a very consistent manner, not in spurts.
-­ Taiichi Ohno
REAL
TIME
MANAGEMENT
LEAN MANAGEMENT SYSTEM
MODELING
BEHAVIORS
LEADER
STANDARD
WORK
©
2017
Mike Orzen
&
Associates,
Inc. mikeorzen.com
Lean IT
Reflection
Visual Management & Metrics
Problem Solving
Align Purpose Improve Process Respect People
Culture of Accountability
Associates Leaders
Improve Work
Processes
Coach &
Develop People
Identify Problems
& Opportunities
Model Ideal
Behaviors
Create
Value
Set
Direction
Lean“Production”
LeanManagement
Foundational Elements
Super Glue
©
2017
Mike Orzen
&
Associates,
Inc. mikeorzen.com

4. 4
We
are
a
PEOPLE organization
THE
KEY TO
OUR
SUCCESS
OPERATIONAL
EXCELLENCE
is
in
our
DNA
which
means…
A
culture
of
quality,
predictable
delivery,
and
continuous
improvement
COMPETITIVE advantage
through
PROCESS
TRUE NORTH: YOUR BELIEF SYSTEM
©
2017
Mike Orzen
&
Associates,
Inc. mikeorzen.com
TRUST, SUPPORT & ACCOUNTABILITY
1. Draws people to the Gemba
2. Everyone has the same view of current state
3. Drives transparency and accountability
VISUALITY
RESPECT FOR PEOPLE

5. 5
Formats can vary but the intention remains the
same – a focus on value-­added work, people
development and process improvement
LEADER STANDARD WORK
©
2017
Mike Orzen
&
Associates,
Inc. mikeorzen.com
DAILY KAIZEN
PROBLEMS TRIGGER ACTION
PLAN
DO
CHECK
ADJ
©
2017
Mike Orzen
&
Associates,
Inc. mikeorzen.com
EnterpriseArchitecture
Application Delivery Value Stream
Service Desk Incident Value Stream
IT Services Value Streams
Cyber Event Mgt Value Stream
SDLC Value Stream
Operations
ServiceDesk&Support
Governance,Budget
Infrastructure
PortfolioMgt.
ApplicationDevelopment
PMOandResourceMgt.
Enhancement/Configuration
THE VALUE STREAM
Create
flow
by
acting
departmentally
while
collaborating
organizationally!
©
2017
Mike Orzen
&
Associates,
Inc. mikeorzen.com

6. 6
CONSTANCY OF PURPOSE
LEAN MANAGEMENT SYSTEM
FOUR TIERS FOCUSED ON
BUILDING LEAN LEADERS
C-­SUITE
FRONTLINE
DIRECTOR
VICE PRESIDENT
TIER 1
TIER 2
TIER 3
TIER 4
ROLLED UP METRICS
TIER
1
TIER
2
TIER
3
TIER
4
©
2017
Mike Orzen
&
Associates,
Inc. mikeorzen.com
Agile
Lean
IT
DevOps
©
2017
Mike Orzen
&
Associates,
Inc. mikeorzen.com
Lean IT
Reflection
Visual Management & Metrics
Problem Solving
Align Purpose Improve Process Respect People
Culture of Accountability
Associates Leaders
Improve Work
Processes
Coach &
Develop People
Identify Problems
& Opportunities
Model Ideal
Behaviors
Create
Value
Set
Direction

7. 7
Reflection…
Focus on Behavior over Thinking
• Know what it should look like for each level
Tie Everything back to Benefit Realization
• Make key metrics visible and embed them into the day-­to-­day operations
• If you are not stumbling, checking and adjusting, then something is wrong!
Sustainability Requires a Lean Management System
• Leaders need support at all levels -­ when will we learn?
• Model the behaviors you want to see
• Visuality, Trust and Accountability require patience and humility
©
2017
Mike Orzen
&
Associates,
Inc. mikeorzen.com Lean IT Summit 14 & 15 March 2017
Copyright © Institut Lean France 2017
Lean IT, DevOps & Agile
Learnings from Nationwide
Mike Orzen
&
Associates,
Inc. mikeorzen.com